InnovADR

InnovADR

Faster, Cheaper, Better

Appropriate Dispute Resolution (ADR)

  • Settle Disputes Within 3-6 Months
  • At a Fraction of the Costs of Going to Trial
  • On a “No Settlement, No Fee” Basis
  • With a >70% Settlement Rate
  • Using Mediators and Other Experts, as Needed

HOW WE WORK

Our Six-Step Process

OUR SIX-STEP PROCESS

  1. Submission of Application Forms: After a case has been created (which can be done by a party, an anonymous person or InnovADR), each party’s authorized representative submits an Application Form (approx. 30 minutes per party).
  2. Submission of Due Diligence Questionnaires (DDQs): After all of the parties have submitted their Application Forms, each essential party fills out a Due Diligence Questionnaire (approx. 60 minutes per party).
  3. Analysis & Proposal from InnovADR: After all of the essential parties’ Application Forms and DDQs have been received, InnovADR analyses them and provides its recommendations for a bespoke ADR process, submitting a written offer to the parties, including the amount it proposes to invest and its success fee if the case settles (approx. 2-5 business days).
  4. Signature of InnovADR Agreement: If the parties agree to InnovADR’s proposal, an ADR Facilitation & Investment Agreement is signed electronically by all of the essential parties. Each signing party is charged an Administrative Fee of one thousand US Dollars (USD 1,000) at this stage. No additional payments are due unless and until the dispute settles (approx. 2-5 business days).
  5. Selection of 1st ADR Neutral (the Mediator): The 1st ADR Neutral in all cases will be an experienced and certified commercial meditator, who is jointly appointed by the parties. Our portal provides an ADR Neutral appointment for selecting a mediator online if the parties need assistance with this. Each party can suggest up to five mediators they would like to propose. Our electronic ADR Neutral appointment system can also be used for appointing other ADR Neutrals subsequently (e.g., experts and/or arbitrators). The parties can also find and appoint ADR Neutrals using any approved database (e.g., the database of the International Mediation Institute), through an approved administering body (e.g., AAA/ICDR, CPR, ICC, SCCM, SIMC, etc.) or working with one of our approved partners (e.g., Mundi Mediatores) (approx. 2-10 business days).
  6. Invoicing and Payment of each Party’s Success Fee: If and when the dispute settles (which should be within three to six (3-6) months from the appointment of the 1st ADR Neutral in 85% of cases), each party receives an invoice in accordance with the signed InnovADR Agreement, which is to be paid within ten (10) business days.

Filling out an Application Form

Each step is confidential and conducted online, using our proprietary software application. The application is not a docketing system, and no sensitive information or confidential documents have to be provided. Each party is asked to fill out its Application Form to the best of its knowledge and belief, as accurately as possible.

The first step to an InnovADR process is for the first party to fill out an Application Form, opening a case. This can be done by anyone, and there are three user profiles:

  • Requesting Party: a party wishes to let the other parties know it has initiated this process;
  • Anonymous Person: a person wishes to open a case, but does not wish to be involved in the process as a party; and
  • Responding Party: a party wishes to open a case without any party being identified as the “Requesting Party”, inviting each party to fill out an Application Form on an equal basis.

These options means it is possible for anyone who is affected by the dispute to initiate a request on an anonymous basis, including concerned third-party stakeholders.

Each party will need to identify itself as an “Essential” or “Non-Essential” party in terms of whether or not its involvement is needed to resolve the dispute.

It is possible for a party to ask InnovADR to open the case itself as the Requesting Party, but as a Non-Essential party.

It is important when opening a case for each party to consider any confidentiality obligations that may exist regarding the existence of the conflict itself and any other parties to it.  InnovADR will treat all information it receives as strictly confidential, and will not disclose a case’s existence to anyone, except the members of each team identified by that party and any ADR neutrals the parties permit InnovADR to share that information with.

Each party will be asked to fill out an Application Form in 5 parts that takes approximately 15-30 minutes to fill out:

  1. Information about your party, including the team of people involved in the application process (if more than one person)
  2. Information about the other party(ies) involved in the dispute and how to contact them
  3. Information about the dispute itself (15 multiple choice questions)
  4. The conflict’s risk of escalating (using a Glasl diagnostic scale)
  5. A consent form indicating if any information can be shared, which has to be approved by that party’s designated Authorized Representative.

Each party will first be asked to provide information about itself and the members of its team.  Each party will need to identify:

  • One Authorized Representative: the person having the authority to represent that party and to make binding decisions on its behalf.

In addition to its Authorized Representative, each party may identify:

  • One Primary Contact: the person InnovADR should interact with if it has any questions
  • One Legal Counsel: that client’s lawyer
  • As many Additional Contacts as it wishes to include in its team.

The Authorized Representative and the Primary Contact can be the same person.

The results page provides a diagnostic analysis (in the form of a Riskin Grid) suggesting different type(s) of processes the parties may wish to consider using to resolve their dispute in view of the answers provided.

Each party’s Application Form must be approved by its designated Authorized Representative by clicking on the green “Approve” button that is only available to that person when they view their party’s Application Form.  (All other team members only see a blue “Submit” button).

The other party(ies) will automatically be invited by e-mail to fill out an Application Form after the first party’s Authorized Representative approves that party’s Application Form.

Filling out a Due Diligence Questionnaire

Once each essential party’s Authorized Representative has approved that party’s Application Form, each party is invited to fill out a Due Diligence Questionnaire (“DDQ”). Each party is asked to fill out its DDQ to the best of its knowledge and belief, as accurately as possible.

The DDQ is a form that is divided into 5 parts and takes approximately 60 minutes to complete. Each part consists of approx. 10-15 multiple choice questions on the following topics:

  • Procedural preferences
  • Prior experiences with disputes
  • The subjective interests, concerns, needs and motives (the “ICNMs”) of the parties, looking to the future
  • The extent to which norms (e.g. laws or industry standards) may need to be applied
  • Whether the parties consent to their answers being shared with any ADR neutrals who may be appointed.

No documents or position papers need to be provided.

Each party’s Authorized Representative will need to click on the green “Approve” button that appears at the end of their DDQ form before that DDQ can be processed by InnovADR.

InnovADR will analyse and make a proposal to the parties after the Application Forms and DDQs of all of the essential parties to the dispute have been received.

Receiving a written proposal from InnovADR

  • Case Assessment: InnovADR evaluates each case following receipt of all completed Application Forms and Due Diligence Questionnaires (DDQs)
  • Required Approvals: The approval of each essential party’s Authorized Representative is required before InnovADR can process these documents
  • Written Proposal: InnovADR provides a written proposal for a dispute resolution process, which aims to resolve the dispute within 3-6 months
  • Investment and Fee Proposal: The proposal includes the amount InnovADR is willing to invest and the success fee it expects upon settlement
  • Investment Details: The investment amount is a fixed, capped sum that will cover the fees of the appointed ADR neutrals (e.g., a mediator and possibly an expert, a conciliator and/or an arbitrator)
  • Investment Criteria: The investment is not linked to the value of the claim or the settlement value of the dispute
  • Fee Structure: InnovADR’s investment is based on process efficiency, with fees reasonable and proportional to the risks of non-settlement
  • Fee Adjustment and Cap: The success fees are adjusted to the complexity or each case and are capped at one-third of the costs of going to trial, offering significant cost savings
  • Success Fee Distribution: The success fees will be split equally among the parties having accepted InnovADR’s investment proposal, unless agreed otherwise between them
  • Final Agreement: Once the proposal is accepted, a final ADR Facilitation & Investment Agreement is sent for electronic signature to each party’s Authorized Representative

Signature of the ADR Facilitation & Investment Agreement

  • Contractual Commitment: It is only at this stage that each party is required to make a contractual commitment, by having their Authorized Representative electronically accept and sign the ADR Facilitation & Investment Agreement
  • Administrative Fees: Upon signing the Agreement, each party commits to pay a one thousand US Dollar (USD 1’000) administrative fee within five (5) business days
  • Success Fees: Each party must agree to pay a success fee if the case settles within eighteen (18) months following the appointment of the first ADR neutral (a mediator), which is capped at one-third of the anticipated costs of going to trial or arbitration
  • Payment is Conditional: InnovADR receives payment of its success fees only if the case settles (fully or partially), thereby saving parties at least two-thirds of anticipated trial or arbitration costs
  • Good Faith Commitment: Parties are asked to commit to the ADR process in good faith, which includes seeking constructive solutions, working collaboratively, and maintaining strict confidentiality about the process and any information exchanged
  • Participation and Communication: A designated authorized representative from each party is expected to participate in each session and to inform others and the ADR neutral(s) in advance of any potential absence
  • Termination Provision: Unless arbitration has been agreed to as part of the process, any party or ADR neutral may terminate the process if they have a good reason to do so, ensuring continued voluntary involvement and cooperation
  • Non-Compellability to Provide Evidence Clause: Neither InnovADR and its staff nor the ADR neutral(s) can be summoned as witnesses in any subsequent legal proceedings, safeguarding the integrity and confidentiality of the process to the extent allowed by law.

Appointment of the First ADR Neutral (a Mediator)

Once the ADR Facilitation & Investment Agreement has been signed by each party’s Authorized Representative, each party is asked to propose up to five ADR neutrals it would like to act as the mediator to initiate their case.

InnovADR does not have a closed list of its own mediators.  While its Advisory Board includes a list of highly experienced and qualified international commercial mediators (all of whom InnovADR will automatically accept and pay for), InnovADR is willing to accept any professional mediator certified by any internationally-recognized ADR institution.  It recommends, however, hiring a Certified International Mediation Institute (IMI) Professional and that each party read IMI’s web page on “Choosing the Right Mediator” and IMI’s Decision Tree before proposing any mediators.

InnovADR’s partner organization, Mundi Mediatores, is also available to assist the parties with the appointment of any ADR neutrals, if needed.

Examples of accredited lists of mediators InnovADR is willing to pay for include all of the ADR Neutrals & Associations listed under “Entities We Work With” above, which includes:

Once the first ADR neutral is agreed upon, the dispute resolution process is initiated. InnovADR will pay upfront for two days of the first ADR neutral’s fees to ensure there are no possible conflict of interest issues with respect to InnovADR, and to preserve their independence, neutrality and impartiality for the parties.

InnovADR remains available to support the ADR neutral(s) in implementing the dispute resolution process that will have been agreed to by the parties after the process has begun.  It may only share the results of the parties’ Application Forms and their Due Diligence Questionnaires with the first ADR neutral if the parties all agreed to it.

InnovADR will pay for the fees of the first ADR neutral and any additional ADR neutral(s) the parties agree to, as well as any associated institutional fees, up to the total amount InnovADR agreed to invest in its agreement with the parties.  Beyond that, the parties are responsible for sorting out any additional fees with the ADR neutrals they have appointed, and for paying these additional fees.

The parties and the ADR neutral(s) appointed commit to inform InnovADR promptly when the case settles (whether partially or completely).  No other information needs to be provided to InnovADR after the first ADR neutral has been appointed.

Success Fees & Invoicing

  • Settlement and Success Fees Due: When a case settles, either partially or fully, InnovADR’s success fees become due. This applies to settlements occurring within eighteen (18) months after the last mandate of any appointed ADR neutral ends
  • Notification Obligations: It is mandatory both for ADR neutrals and the parties involved to promptly notify InnovADR of a case’s settlement
  • Invoice Issuance: Following its receipt of a settlement notification by a party or an ADR neutral, InnovADR issues individual invoices to each party to pay its allocated success fee
  • Invoice Limitations: The invoiced amount is limited to the success fee agreed in the ADR Facilitation & Investment Agreement, with a maximum cap of one-third of the anticipated costs of going to trial or arbitration in that specific case
  • Payment Responsibility: Each party is required to pay its respective success fee within ten (10) business days of receiving InnovADR’s invoice
  • Late Payment Penalty: A compounded monthly interest of 5% above the US prime rate is charged on late payments, accruing until the success fees are fully paid
  • Contact for Fee Inquiries: Parties can contact info@innovadr.com for any questions related to fees or invoicing